Fracking in the UK

Shale gas and oil exploitation is likely to go ahead in the UK, despite growing public concerns over the possible social and environmental impacts of fracking operations. But are those concerns justified and what measures are in place to protect local communities from the potential risks of this emerging new industry? John Barwise investigates.

Last year David Cameron announced that the Government was “going all out for shale”, arguing that the fracking industry “means more jobs and opportunities for people, and economic security for our country”. Both Labour and the LibDems support this view.

The Government’s drive to push through its fracking plans is based on encouraging survey data from the British Geological Survey (BGS) which indicates the UK has significant gas and oil resources buried deep in underlying shale rock which could be exploited using hydraulic fracturing technology, or fracking.

Commercial benefits

According to the BGS, the Bowland shale, covering Lancashire and much of northern England, has an estimated 37.6 trillion cubic meters (tcm), of ‘gas-in-place’ trapped within shale rock, while The Midland Valley in Scotland, has a further estimates ‘gas in place’ of 2.27 tcm, and 6 bn barrels of shale oil in place. The Weald basin, which stretches from Wiltshire to Kent also contains an estimated 4.4 bn barrels of shale oil in place.

The commercial viability of the fracking in the UK will not be known until more tests have been carried out and production gets underway. But in a bid to encourage further investment, George Osborne has halved the taxes levied on fracking companies, saying this would help create more jobs and lower energy bills. “The country that was the first to extract oil and gas from deep under the sea should not turn its back on new sources of energy like shale gas because it's all too difficult”, said Osborne, in his autumn statement.

What is fracking?

Fracking, involves pumping water, sand and chemicals down a vertical well under pressure to create fissures in the shale rock that allows gas or oil to flow more freely into the well. The process has been used in the US in ‘conventional’ vertical oil and gas wells for over 60 years and in the UK’s onshore and offshore oil and gas fields since the 1970s and 1980s. But it was the introduction of horizontal drilling technology in the 1980s, combined with fracking, which opened up new ‘unconventional’ shale oil and gas reserves and revolutionized the US fossil fuel industry and which the UK Government believes could do the same here.

Concerns

There are an estimated 80,000 fracking wells across the US and the industry now accounts for 40% of US domestic gas production and 30% of oil production. But fracking is intrusive and has its problems – earthquakes, groundwater contamination, air pollution and methane migration have all been linked to fracking activities in the US. Fracking also consumes millions of gallons of water which has impacted on local marine environments and drinking water supplies in the US.

Videos of flaming taps, chemical residues and dead fish, thought to be linked to fracking accidents in the US, have gone viral on YouTube and raised public concerns in the UK that fracking may be a high risk process. Further concerns were raised in 2011 when mining company Cuadrilla were forced to suspend exploratory fracking operations at its Preese Hall-1 site in Lancashire, following two minor earthquake. The Government imposed a moratorium on hydraulic fracturing in November 2011 which stayed in place until additional controls to limit seismic risk were put in place in 2012.

The earthquakes at Preese Hall, together with fracking incidents coming out of the US has undermined public confidence in fracking. According to surveys carried out by the University of Nottingham, public confidence in fracking fell from 58.2% in July 2013 to 49.7% in May 2014. Professor Sarah O’Hara, who led the survey, said there is an increasing sense of unease about the environmental and health implications of fracking amongst the UK public. Speaking at an industry conference in February she said: “Shale gas has become the new nuclear. It is going to be quite a job, I think, changing some of the opinions that have been formed because that is how people are seeing it. There is an issue with shale gas for the British public. It needs a makeover very, very quickly”.

One of the criticisms levied at the Government is its failure to debate the issues and explain the regulatory framework now in place to mitigate the risks to human health and protect the environment. “There are many valid concerns and a huge amount of potential to be gained from exploiting shale gas”, said Geoff Maitland, President of the Institution of Chemical Engineers (IChemE). “For government, in particular, it’s important that they present a clear roadmap of what shale gas means to the country’s future, and how they are going to address legitimate concerns”.

Defra was further criticised in the media last year for censoring its report into the social and economic impacts of fracking on rural economies. The report, Shale Gas: Rural Economy Impacts was heavily censored, with several paragraphs on the effects of fracking on local house prices and local services being redacted. A letter published with the report said: "There is a strong public interest in withholding the information because it is important that officials can consider implications of potential impacts and scenarios around the development of the shale gas industry and to develop options without the risk that disclosure of early thinking could close down discussion."

Measures in place

Regulations governing onshore fracking operations in the UK are more rigorous than those in the US and involve a number of government departments and regulatory agencies. The Department of Energy and Climate Change (DECC) issues drilling licences to explore and produce oil and gas, providing relevant planning and other permissions have been obtained. Drilling consents are subject to planning permission from local minerals planning authorities (MPA). Mining companies also require permits and authorizations from the relevant environment agency in England, Scotland, Wales or Northern Ireland for water resource protection, treatment and disposal of extractive wastewater and emissions to air, with additional requirements governing site-based monitoring and reporting.

The environment agencies are also statutory consultees in the planning process, which advises on whether planning permission should be granted for a fracking site. The Health & Safety Executive (HSE) regulates on-site activities such well casings and design safety, with risk management monitoring throughout the life cycle of each well.

To satisfy the requirements for permits and authorizations, drilling companies are required to carry out an environmental impact assessment (EIA) and to submit details of their plans to the environmental regulator, including a site condition report. An environmental statement must include a description of the physical characteristics of the site as well as a description of those environmental aspects likely to be significantly affected by the development, including population, fauna, flora, soil, water, air, climatic factors, material aspects, landscape and the interrelationship between these aspects. Operators are also required to undertake an environmental risk assessment covering the full life-cycle of the proposed fracking operations, including relevant information on measures to avoid, reduce and if necessary to remedy significant effects.

To date, no planning permission has been granted for commercial fracking in the UK, but all eyes are on Lancashire council who, on 30 April, will decide on an application from Cuadrilla to drill, frack and test gas flows at two sites in Lancashire – Preston New Road at Little Plumpton, and Roseacre Wood at Roseacre.

Both sites were subject to EIAs and environmental statements were produced for both applications. In January, the Environment Agency granted the environmental permits that Cuadrilla needs to carry out shale gas exploration at its Preston New Road site. Steve Molyneux, Environment Manager for Lancashire, said: “After completing a rigorous assessment of Cuadrilla’s application and the public consultation responses, we are confident the permits issued will ensure people and the environment are protected. The right controls are in place to manage waste and the flaring of gas safely, and protect local water resources”.

However, council planning officers had advised the application should be refused because the development would cause “unacceptable” increases in noise and heavy traffic. In response, Lancashire council decided to defer its final decision in order to give Cuadrilla more time to come up with mitigation measures to address these issues. Commenting on the council’s decision, a Cuadrilla spokesman said the timescale would allow the public to “properly review” the “additional information” the firm had provided “to fully address the noise and traffic concerns”. On other issues, including public health, air and water pollution, subsidence and earthquake risk, planning officers said these impacts “would be low or could be mitigated” and “concluded that the principle of exploration for shale gas would be acceptable”.

The Government has introduced a number of financial incentives to garner support for fracking. Local councils, for example, can keep 100% of business rates raised from fracking sites, which could generate millions of pounds for cash-strapped councils. Local communities will also receive around £20,000 for each lateral well at fracking sites in their area. But a survey commissioned by Greenpeace suggests financial inducements are unlikely to change public opinion. From a poll of 500 Lancashire residents, released in November, nearly two thirds (63%) were in favour of a fracking ban, with an even stronger majority (69%) saying more time should be allowed for a public debate to take place before planning authorities decide on drilling licences.

Whatever the outcome of local council planning decisions the Government is determined to press ahead with fracking on the basis that shale gas and oil offer economic benefits and energy security for the UK. But with opposition to continuing to gather momentum, the Government has yet to win the argument that current regulations are enough to mitigate the social and environmental risks associated with fracking.